Responsibilities of Builders & Promoter under RERA

Responsibilities of Builders & Promoter under RERA

Home » Learn » Real Estate » Responsibilities of Builders & Promoter under RERA

Responsibilities of Builders & Promoter under RERA

Builders and promoters are tasked with various responsibilities under the RERA Act. All builders and promoters who undertake a real estate project with over 8 units or 500 square meters of development are required to obtain RERA registration and fall under the ambit of RERA regulations. Under RERA, a promoter is defined as a person who is entrusted with the task of promoting the project, which was developed or constructed by the developer. In this article, we examine the responsibilities of real estate builders and promoters–.

Basic Responsibilities

The promoter is primarily responsible to get the real estate project registered with RERA. The builder or promoter is also accountable for all obligations, responsibilities and functions under the provisions of RERA Act.


All builders and promoters must create a website and display on the RERA Authority’s website and enter all the necessary details of the proposed project for public view, which includes details such as:

  • Details of the registration approved by the Authority.
  • Quarterly list of the number and type of booked apartment or plots, list of approvals taken and the list of pending ones subsequent to the commencement certificate, status of the project etc.

Note:- The promoter must mention the website address of the Authority in any advertisement or prospectus issued by him/her.

Completion Certificate

Promoters are vested with the responsibility of obtaining the completion or occupancy certificate from the concerned authority for the purpose of making it available to the allottees either individually or to the association of allottees.

Besides, the promoter is accountable for obtaining the sale deed or lease certificate which specifies the period of lease, and certifies that all dues and charges pertaining to the leasehold land have been paid. This sale deed of land, leashold deed and completion certificate must be made available to the allottees.

Know more about homebuyers rights under RERA.

Provision and Maintenance of Services

Promoters are required to provide and maintain the essential services at a reasonable cost, until the association of the allottees take over the project.

Formation of Association

The promoter is vested with the responsibility of enabling the formation of an association, society or co-operative society of the allottees or a federation of the same under the applicable laws. In the absence of local laws, the association of allottees must be formed within three months of the majority of allottees having booked their plot, apartment or building in the project.

Availability of Documents

The promoter should facilitate the availability of documents during the booking and issue of allotment letter, which includes the likes of sanctioned plans and layout plans that is duly approved by the concerned Authority.

Registered Conveyance Deed

The promoter must take the responsibility to execute the registered conveyance deed of the real estate property in favor of the allottee. This must be accompanied with the undivided proportionate title in the common areas to the association of allottees, who have booked their real estate property in the project.

Payment of Outgoings

The promoter must pay all outgoings until he/she transfers the physical possession of the real estate project to the allottee or the association of allottees, which includes ground rent, land cost, maintenance charges, etc. If the promoter fails to pay all or any of the outgoings to the allottees or the association of allottees, then he/she continues to be liable even after the transfer.

Restriction on Mortgaging

After executing an agreement for sale of any real estate property, no mortgage or creation of charge must be made on such real-estate property. Even if this stipulation is breached, the right and interest of the allottee shouldn’t be at stake.

Know more about penalties under RERA.

Other Related Guides

IE Code Application IE Code Application More and more SMEs are becoming global in terms of doing business due to the growth in e-commerce platforms, cloud computing tech...
GST Registration Requirement GST Registration Requirement In June 2016, the Ministry of Finance (MoF) implemented the Model GST Law. The law defines the applicability of GST in I...
GST Registration for Branches & Business Vert... GST Registration for Branches & Business Verticals According to the CGST Act, all the suppliers of taxable goods and services should register wit...
GST on Joint Development Agreement GST on Joint Development Agreement An agreement between a landowner and a real estate developer to construct new projects is called a Joint Developme...
Punjab RERA Registration for Projects Punjab RERA Registration for Projects The Government of India has initiated the Real Estate (Regulation and Development) Act, 2016. Under this Act, a...

Post by Sreeram Viswanath

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.